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Let me relate a real story about why you should never trust an insurance company. This is for a case I am currently working on. As background, my client was rear ended in a car accident by an unlicensed, uninsured driver.

A client of mine was involved in a car crash. He went to the ER. His health insurance paid $4,000 of a $10,000 bill. His own insurance company, GEICO, offered to settle the case with him and told him it was based on $4,000 in medical bills.

The problem? The client is still on the hook for the other $6,000. This is called balance billing and it is legal in California. In other words, you may get stuck with a balance for emergency room treatment even after your insurance company pays the bill.

The adjuster knew this, admitted to me that he knew it, and had no problem with the fact that he lied to my client/their insured. Yes, their own customer they lied to and had no issue with it. The client called me for a consultation. I helped him through this mess and we will get his case resolved.

The moral of the story: do not trust insurance companies. I don't care if it is a "small crash" or a large crash, you need to at least consult with an attorney about your car crash.

I have been saying this for 12 years while running my own law firm. Prior to that, I said it for almost a decade working for insurance companies. And yet, despite what I say, people do not listen. So let's try it again - there is NO formula for settling a personal injury case, whether it is a car accident, slip and fall or any other type of injury.

First, despite what some adjuster might tell you, and what you will read on the internet, there is no secret formula or book that tells you what your case is worth. Insurance adjusters are big now in telling people that they have reviewed the information and their formula tells them that the case is worth a certain amount. Heck, I heard it yesterday! Trust me, juries do not use formulas when they evaluate cases and good personal injury attorneys do not use formulas either.

Each case has its own value and the insurance companies alleged "formula" is not accurate. If it was simple as multiplying your medical bills by a certain number, a lot of people say 3 times your medical bills, then there would be a lot of unemployed attorneys, on both sides, and a lot of unemployed adjusters. Think about the money insurance companies would save by firing their adjusters. And, make no mistake, insurance companies like saving money! There is no formula for settling a claim as every claim is different and every situation is different!

The adjuster will also try to talk you out of retaining an attorney. The adjuster will tell you that it does not increase the value of the case. That is complete garbage. An attorney with experience can help you maximize your recovery. In fact, a study by Allstate, and confirmed by other insurance companies, showed that people who hired an attorney recovered more money than someone who did not hire an attorney. In other words, hiring an attorney resulted in a larger net settlement for the injured party. (By the way, add in that you have less stress, don't have to talk to the adjuster, and don't have to worry about missing some deadline and it makes more sense.) They just don't want to publicize these studies!

Talk to an attorney and find out the real value of your case. Do not assume there is a formula, despite what you might read online!

The what of what? I typically hear people call it the statue of limitations. However, folks, it is not a statue. It is a statute, or a law. The statute of limitations tells you how long you have to sue someone for something. We don't want people to do something today and then be sued in 20 years. Witnesses forget things, evidence is destroyed, people move on with their lives. So we have this handy dandy law that limits how long you have to sue someone. Here is a shortcut. This does not provide every statute of limitations and you should talk to an attorney about YOUR specific facts. Do not rely on this as telling you what your statute of limitations is!

Medical malpractice actions: Three years from the date of injury or one year from the date of discovery of the injury, whichever occurs first.

Suits for libel or slander: One year.

Personal injury claims based on negligence: Two years.

Suits for injuries resulting from domestic violence: Three years from the last act of domestic violence.

Childhood sexual abuse: Eight years from the victim's 18th birthday or three years after the victim realizes that physical or psychological injury has resulted from childhood sexual abuse, no matter what the victim's age.

Property Damage: There is a three year time limit to file a lawsuit for property damage, from the date that the damage occurred.

Government Agency Claims: The claim filed against the government agency has a time limit of six months from the date of the incident.

The point of this is a simple reminder: do NOT wait to talk to an attorney if you have been injured. You could miss a deadline. For example, if you get in a car crash and you don't realize the other driver was working for the State or County, you could miss the six month government tort claim statute.

If you have any questions about a specific statute of limitations, talk to an attorney!

Of all the automobile insurance coverage that exists, Uninsured Motorist Coverage (UM) is THE MOST important coverage. (In California, uninsured motorist also acts as underinsured motorist coverage.)

Why is Uninsured Motorist Coverage so Important? If you buy UM coverage and a driver who has no insurance injures you, your insurance company will pay your damages up to the limit of your UM coverage. Since the other driver is uninsured, or underinsured, your insurance company “steps into the shoes” of the insurance the other party should have had and pays the claim. UM coverage also will pay you if you are the victim of a “hit and run” and the other driver is never caught. However, you must meet certain requirements, but this coverage can be very important. For example, if you are hit by a hit and run driver, you need to have the license plate number and a police report to have coverage under most policies.

Example: You are stopped and hit by a person who has no insurance. You are injured as a result of the collision. Your insurance company will pay you for your injuries since the other person did not have insurance.

UM also acts as Underinsured Coverage. If you get hit by someone who has less insurance than you, and your injuries are worth more than the other person’s insurance, your insurance company will pay you the amount of your claim up to the limits of yourcoverage.

Example: You are stopped and hit by a person who has a $15,000 policy. You are injured and your medical bills are $30,000. His insurance company will pay you the $15,000 and your insurance company will pay you the difference. However, they only pay you up to your limit. So if your limit is $25,000, you would only be paid $10,000 more.

Does this sound like something your insurance company has told you? Probably not.

Why aren’t they telling you this? Well, uninsured motorist coverage is relatively inexpensive to increase. Therefore the increase from a $30,000 insurance policy to a $100,000 policy generally will only cost you a few more dollars per policy. However the coverage is substantially greater, in this case, more than three times greater.

Why is this the most important insurance coverage you can have? Uninsured motorist and underinsured motorist protect YOU! Let me say that again: this insurance protects you. Let's say you are the sole income earner in your house. An uninsured motorist hits you and makes it so you can't work for 6 months. Your uninsured motorist coverage makes sure that you get compensated for your injuries. Why would you have $100,000 of protection for other people but only $15,000 or $25,000 for yourself? You wouldn't but because most people don't really understand this coverage, they make this mistake - constantly! And your agent doesn't tell you this!

Remember, about half of all drivers in California are uninsured. About another 25% are underinsured. So 3 out of every 4 drivers do not have enough insurance to compensate you if you are injured or your car is damaged in a crash. Your solution is uninsured motorist coverage.

This came across my desk and was interesting enough that I wanted to pass it on. An Ontario court has authorized a lawsuit against a personal injury law firm. According to the story, 6,000 clients are able to "participate in a lawsuit alleging that the firm entered into improper fee agreements, took unauthorized fees, failed to obtain required court approval and charged illegal interest rates on disbursements."

This is a quirk in Canadian law that is different than US laws. The way that fees and costs are calculated in Canada is slightly different. In California, the attorney can charge you for incurred costs and fees per the fee agreement. You should receive a breakdown of the costs. The fee can either be a net fee based on the settlement less the costs or a gross fee based solely on the settlement.

This is an interesting case. I am curious to see how it turns out. When you hire an attorney, make sure you understand how your fees will be calculated.

I was looking at a drone and Google, being smart, also gave me a link to a Bloomberg Business story about drone insurance. My first thought was "what?" Drone insurance? But as I read the article and started to consider it, I thought it was interesting.

Drones, as you may know, are regulated by the FAA. As such, there are some federal regulations that apply. However, there is not a requirement that you have insurance. So, what happens if your drone is either damaged or causes damage?

The first question is easy. Most of us are spending $75 to $100 on a drone. In that price range, if your drone is damaged, you would just replace it. Even if it is covered by your homeowners insurance, this would be under most people's deductibles. So you just replace it and move on.

The second question is more interesting. What happens if your drone hits a car and damages it? Or your drone hits a kid and hurts him? Now you have a drone bodily injury claim.

The Academy of Model Aeronautics has one solution. For $75 per year, you can join and they provide you with access to a $2,500,000 liability policy. This would cover property damage and most, if not all, injuries caused by a drone. This would allow the injured person to receive compensation.

But, what if you do not want to spend the $75 on joining this group? Your homeowners insurance SHOULD provide coverage. I say should because every homeowners policy is different. You need to read your policy. If you have questions, you need to call your agent and ask, specifically, if injury or damage done from a drone is covered by your policy. Each insurance company is going to have a different policy. My agent told me that my policy will cover a drone caused injury. But your insurance company may have a different interpretation.

Of course, if you are injured by a drone, talk to an attorney about your rights. You may have a claim against the drone operator!

My friend Bob Kraft at Kraft & Associates in Dallas, TX has a great post this morning on the danger of parking lots during the holidays. Did you know that backing up accounts for 1% of drive time but 25% of car crashes?

From Bob's post: "Bloomberg points out that “distractions from passengers, phones, the radio or intense parking-spot searches contribute to high crash rates in lots.” California officials “recommend that drivers check surroundings before entering their cars, look every direction when pulling in or out of a parking space, stay off the gas pedal while backing up and watch for pedestrians moving between vehicles.”"

I remember when my dad took a defensive driving course required by his employer. One of the points was to pull through parking spaces whenever possible so as to minimize your time backing up. It sometimes looks awkward to pull through the spot and you have to be careful, but it does make driving safer.

Remember, if you are backing up and hit a pedestrian, or a parked vehicle, you are going to be found at fault by your insurance company. That will increase your rates. Be careful this holiday season and pay extra attention when backing up!

I have seen a lot of car accidents in my life. I have seen a lot of car crashes as well. I have sen almost everything you can imagine when it comes to a car colliding or two cars colliding. I have seen people putting on makeup, drinking, eating, texting, talking, and simply not paying attention.

Now most of you probably think it is a kid issue. Kids, teens, even young adults want to constantly talk to their friends. When we were growing up, you had to go see them or talk to them from your home phone. Today, teens and young adults keep in touch with their cell phones more than anything else.

However, I am wrong about who is doing this. "The increases are driven largely by the growing use of smartphones among drivers 40 and older, says Chris Mullen, State Farm's director of technology research. 'It's not just a youthful problem.'" Yes, you read that right. It is not just a youthful problem. My generation, people over 40, are doing this more than kids!

By the way, it is against the law in many states to text and drive. In California, the law says you cannot text and drive. At least, that is what most people think. But, it is actually against the law to use your cell phone. That would include checking email, surfing the web, etc....

So it looks like people are driving and texting, driving and calling, and driving and surfing the web. This is a serious issue that people need to be aware of. We talk about it, but how many people still text and drive?

When you are out on the road, be careful. Your first job when you are driving is to get where you are going safely and to make sure its safe for you, and everyone else on the road. Do not get into a car accident because you are doing something other than driving!

Nine years ago I wrote about drinking, driving and the holidays. In that time, I have handled quite a few car crash cases every November and December. More than a handful of these involve DUI. For example, a new client came to me and was rear ended by a guy who was drunk. Sadly, this was not the first driving under the influence and causing a car crash. In fact, the officer who arrested him had previously arrested him for DUI.

Today, I heard this on the radio and had to pass it on. Every 15 minutes is a great program to educate young people against driving under the influence. For the rest of you, here are a few reasons not to:

You are probably going to kill or injure someone. By probably, I mean there is a really good chance of it happening!

You will get caught at some point in time. It is a matter of when, not it;

You are probably going to kill or injure someone. Did I mention this yet?;

Ever try to get insurance with a DUI - it is not easy or cheap. Add in lawyer fees, court costs and other expenses and it is crazy expensive;

You are probably going to kill or injure someone. I think you may have heard this from me;

If 1, 3 or 5 happen, it will cost you. If you have insurance, your insurance company will pay more money if someone is injured than if you were sober. If you do not have insurance, you will pay more money. When I handle personal injury claims, if someone is injured by a drunk driver, the case is worth more money. If you are drunk, you can be personally sued for punitive damages. These are not covered by insurance and you generally cannot file bankruptcy to make these damages go away;

See 1, 3 and 5.

I hope you are all safe over the next few weeks. Please make sure you do not drink and drive. If you are with someone who has had something to drink, please make sure that they do not drink and drive as well. Be safe!

I have come across quite a few total losses lately that are simply wrong. I would like to tell you that the values are wrong or that there is a dispute. But the last few that I have seen are wrong.

What do I mean by wrong? Let's say you have a Honda Accord. If the adjuster listed it as a Honda Civic, the total loss evaluation would be wrong. What if you had a Dodge Challenger and the adjuster put down a Ford Escort? That would be wrong as well.

These may seem like extreme examples. But, I have had quite a few similar examples recently. For example, my client had an Acura Integra Type R. The insurance adjuster evaluated it as an Acura Integra. Now, this isn't a trim line issue. For those of you who do not know what that means, trim lines are usually things like EX, LX, etc... after the type of car. Ford likes to use Limited, Eddie Bauer and other names.

But, with respect to the Integra, the regular Integra is a good car. The Type R is an even better car with significant upgrades in engine, steering, brakes and a few other bells and whistles. The Type R was also made in limited production.

When you get your total loss evaluation, make sure you review it closely so you can confirm that they are evaluating the right car with the right equipment on it!

DISCLAIMER

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This blog is made available by the lawyer publisher for educational purposes only as well as to give information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog publisher. The Blog should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. Jonathan G. Stein, is licensed to practice law in the state of California only.
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